The 5 Phases of Cloud Cost Management

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OVERVIEW

BILL ANALYSIS

IDLE RESOURCES

MONITORING

RIGHT SIZING

PURCHASE PLANNING

BRINGING IT ALL TOGETHER

Table of Contents

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Overview

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The Public Cloud Should be Cost EffectiveThe original promise of the public cloud was to provide a simple and cost-effective alternative to hosting your own servers in a data center. Many new technological innovations have arisen in pursuit of that goal, however, the complexities involved in running a public cloud have only become increasingly troublesome to master—and quite expensive.

of IT decision-makers cited spend and cost overruns as a big concern in a 2019 cloud adoption survey by NetEnrich.

Cloud Costs: a Trending Problem

59%of the projected $206.2 billion dollars to be spent on public cloud in 2019 is likely to be wasted. 35%of AWS resources are believed to be over-allocated (or underutilized).40%

OVERVIEW

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Why Public Cloud Costs are Growing

There are several factors that contribute to a company’s inflating cloud costs. These factors go overlooked because of the inherent risk and complexity involved in properly addressing them.

Take the task of right sizing resources, for example. Engineers often prefer to wait until absolutely necessary before adjusting capacity allocations—and for good reason. Without proper analysis, right sizing your resources could cause unwanted performance bottlenecks that impact your customers. The time and money required to even conduct such thorough analysis (either through expensive consultants or by building in-house analytic tools) is enough to deter, or at least delay, anyone from starting cost optimization projects.

How CloudWisdom Helps You OptimizeCloudWisdom believes in the promise of the cloud and is dedicated to building the tools needed to deliver on that promise. By identifying the 6 key phases outlined in this ebook, CloudWisdom has created a framework that addresses the various dimensions of planning and analyzing needed to successfully optimize your public cloud.

OVERVIEW

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The 5 Phases of Cloud Cost Management

Catching and preventing end-of-the-month surprises

1. Bill Analysis

Discovering wasted spend that’s safest to remove

2. Idle Resources

Detecting performance bottlenecks before your users

3. Monitoring

Addressing your over-allocated resources and planning for auto-scale

4. Right Sizing

Striking a balance between deep savings and infrastructure agility

5. Planned Purchases

OVERVIEW

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The CloudWisdom FrameworkHow these phases look in your cloud cost journey:

OVERVIEW

Isolate by Budget

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Bill Analysis

The Billing Analysis phase is informed by the foundational efforts accomplished by indexing and benchmarking your environment. When analyzing your bill, you use metadata such as attributes (Instance type, Availability Zone, etc) and tags to explore dimensions in granular detail, compare spend with previous periods, and save scheduled emailed reports. Finally, we allow you to filter the results by conditions such as percentage of change over time, and send emails upon detecting a sudden change in any sub-category.

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1 BILL ANALYSIS

Billing Analysis Tools & Strategy: Strategy:

Explore your cost deltas by service and many other dimensions. Save time by automating management reporting instead of constantly checking AWS Console for changes in spending.

Tool:Use the Bill Analysis Tool to explore cost dimensions, save reports, and set up email alerts for unexpected changes in sub-categories organized by meta-data.

Benefits to Billing Analysis

Get notified of sudden changes in sub-categories

Automate management reporting with our scheduled customized emailed reports

Avoid end of month surprises

Customizable emailed report, showing the weekly change in cost by AWS service

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Idle Resources2

Once you have an understanding of your overall AWS spend through Billing Analysis, you can start saving costs. Finding and organizing your Idle Resources into actionable workflows (such as archival or termination) is the easiest way to capture savings and reduce your total AWS bill. Keeping track of your unused resources across development, testing, and production environments can be difficult given the rate of change. Now, with our proactive emailed reports, you can be notified of any resource that have recently gone idle before you spend a fortune on those unused resources.

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IDLE RESOURCES

Idle Resource Optimization Tools & Strategy

Tools:Use the Unattached ELB, Unattached EBS, or EBS on Stopped EC2 Tools.

Strategy: Subscribe to you emailed reports that update you on Idle resources and avoid being caught off guard at the end of the month.

Benefits to Optimizing Idle Resources

Be proactively notified when resources become idle

Save unnecessary spend on unused or detached resources

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Find storage blocks no longer attached to a compute instance, or attached to a stopped instance

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Monitoring provides IT professionals the opportunity to catch performance bottlenecks and pinpoint where and why these performance issues occur. The alerting process is fully automated, using preset multi-conditional policies based on industry best practices for every cloud resource type.

Monitoring3

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MONITORING

Benefits to Monitoring

Catch performance bottlenecks before your users take notice

Automate alerting based on machine-learning and preset policies

Create your own multi-conditional custom policies

Make right sizing changes with confidence

Watch key performance indicators in live dashboards across all of your cloud accounts

Add notifications to your policies through email, slack, and others

Deploy open source agents to get additional metrics such as memory and I/O wait

Billing Analysis Tools & Strategy

Tool:Use Policies, Alerts, and Notifications.

Strategy: Use our out-of-the-box policies and dashboards or create your own. Add notifications to stay on top of performance changes.

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The green and blue bands represent the expected metric range based on learned contextual information, like statistical correlation with other metrics

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4

Right Sizing is often the most complex phase. This is because doing it effectively requires real-time measurement and aggregation of resource utilization and product knowledge that contextualizes the workloads within your infrastructure. You also need to know the thousands of available and ever-expanding list of configurations for AWS resources, and calculate the amortized value of your reservations based on instance usage to determine saving potential. Reduce the complexity of this task with CloudWisdom’s powerful recommendation tools, which allow you to easily identify opportunities to optimize and save. The analysis is done for you, all you have to do is plug in your special preferences.

Right Sizing

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RIGHT SIZING4

Benefits to Right Sizing

Tune over-allocated resources to save on your AWS bill

Scale resources up to match workload growth

Find ideal resource settings before making long-term reservation commitments

Analyze your EC2, RDS, S3 and Lambda utilization and costs

Set instance preferences based on target utilization levels, series, generation, size, and factor those values into proposal calculations

Visualize actual vs. ideal compute configuration to quickly spot under and over-utilized instances

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Right Sizing Tools & Strategy

Tool:EC2 Recommendations

Strategy: Follow our Lambda guide and understand why allocation the right amount of memory for your Lambda functions can be complicated without a tool to help you, AWS Lambda Cost — Your Guide to Understand, Calculate, and Optimize.

Tool:Resource Utilization

Tool:EC2, RDS, S3 Cost

Tool:Lambda Sizing

Strategy: Get specific sizing recommendation sorted by saving and group by meta-data and schedule emailed reports to your extended team to raise awareness. Check out our article, How to Right Size EC2s and Maximize your AWS Budget.

RIGHT SIZING4

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Purchasing Reserved Instances in the cloud opens up savings opportunities across the linked accounts in your portfolio. Reservation planning is usually considered a daunting task. But planning your reservations becomes easy once you’ve addressed the other phases outlined in this book. You only want to purchase reservations after you right size your resources or confirm they are optimally configured. Typically, you first isolate an area of your infrastructure using tags and attributes, and then you purchase reservations gradually over time. CloudWisdom makes the planning process that much easier by providing you with recommendations along with our Premier services to help you at every step.

Purchase Planning5

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PURCHASE PLANNING

Benefits to Reservation Planning

Measure your on-demand and reserved utilization on hourly basis instead of daily averages

Know your reservation usage at an instance-level by filtering, sorting, and grouping by meta-data

Avoid over-buying reservation skewed by usage during peak hours

Get proactive expert advice to help you make decisions

Create a cycle of buying that’s predictable and organized

Billing Analysis Tools & Strategy

Tool:Use the EC2 Reservation Recommendations tool to discover savings potential and specific reservation recommendations sorted by savings potential.

Strategy: Read our Mistakes to Avoid With AWS Reserved Instances to learn about the risks of buying reservations based on daily averages of instance hour usage

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Hourly usage data provides accurate purchasing recommendations to avoid over-buying reservations that can’t be effectively utilized

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Bringing it All Together

Cloud cost optimization becomes easy once you break down your cloud cost journey into these 6 main phases. Together, these phases eliminate redundant tasks that bottleneck cost projects by overlaying inter-dependent tasks. The end result is an environment with properly scaled resources that maximize your reservation portfolio to give you the best balance of cost and infrastructure stability.

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See Us in Action

BRINGING IT ALL TOGETHER

See how we’ve helped businesses like yours.

CloudWisdom saves Capgemini’s vacation-experience client $2 million yearly

CloudWisdom helps Viewpost find a path to cutting AWS costs in half

CloudWisdom helps Mixbook achieve “high level of confidence” in AWS monitoring

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BRINGING IT ALL TOGETHER

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